Trump threatens Tillis with primary challenge
Senate Republicans released updated megabill text late Friday that would make sharp cuts to the Inflation Reduction Act's solar and wind tax credits after a late-stage push by President Donald Trump to crack down further on the incentives.
The text would require solar and wind generation projects seeking to qualify for the law's clean electricity production and investment tax credits to be placed in service by the end of 2027 — significantly more restrictive than an earlier proposal by the Senate Finance Committee that tied eligibility to when a project begins construction.
The changes came after Trump urged Senate Majority Leader John Thune to crack down on the wind and solar credits and align the measure more closely with reconciliation text, H.R.1, that passed the House, as POLITICO reported earlier on Friday.
The changes are likely to put some moderate GOP senators, who have backed a slower schedule for sunsetting those incentives, in a tough position. They'll be forced to choose between rejecting Trump's agenda or allowing the gutting of tax credits that could lead to canceled projects and job losses in their states — something renewable energy advocates are also warning about.
'We are literally going to have not enough electricity because Trump is killing solar. It's that serious,' Sen. Brian Schatz (D-Hawaii) responded on X early Saturday. 'We need a bunch of new power on the grid, and nothing is as available as solar. Everything else takes a while. Meantime, expect shortages and high prices. Stupid.'
The revised text would retain the investment and production tax credits for baseload sources, such as nuclear, geothermal, hydropower or energy storage, as proposed in the Finance Committee's earlier proposal.
But it would make other significant changes, including extending a tax credit for clean hydrogen production until 2028. The panel's earlier proposal would have eliminated the credit after this year.
And despite vocal lobbying by the solar industry, the proposal would maintain an abrupt cut to the tax incentive supporting residential solar power. The committee's earlier proposal would have eliminated that credit six months after the enactment of the bill; now the updated draft proposes repealing it at the end of this year.
It would also deny certain wind and solar leasing arrangements from accessing the climate law's clean electricity investment and production tax credits, but, in a notable change, removed earlier language specifically disallowing rooftop solar. And it would move up the timeline for certain rules barring foreign entities of concern from accessing those credits.
The bill would move up the termination date for electric vehicle tax credits to Sept. 30, compared to six months after enactment in the earlier Finance text. The credit for EV chargers would extend through June 2026.
The new text also provides a bonus incentive for advanced nuclear facilities built in communities with high levels of employment in the nuclear industry. And the bill makes metallurgical coal eligible for the advanced manufacturing production tax credit through 2029.
Sam Ricketts, co-founder of S2 Strategies, a clean energy policy consulting group, said the new draft is going to 'screw' ratepayers, kill jobs and undermine U.S. economic competitiveness.
'All just to give fossil fuel executives more profits,' he said. 'Or to own the libs. Insanity.'
Josh Siegel contributed to this report.
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